Natural Gas Price Analysis for September 20, 2017
Natural gas prices gave back gains from Monday, following a breakout in ahead of Hurricane Maria. It appears that Maria is forecast to move out to sea and not hit the United States mainland, which should reduce fears of production interruption. Support is seen near a breakout level which was a downward sloping trend line which comes in near 3.10. Resistance is seen near Tuesday’s highs at 3.166.
Momentum has Turned Positive
Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices for natural gas.